Summary BTEC Business Level 3: Unit 1 - Exploring Businesses (Distinction*), Exams of Nursing

Download Summary BTEC Business Level 3: Unit 1 - Exploring Businesses (Distinction*) and more Exams Nursing in PDF only on Docsity!

Summary BTEC Business Level 3: Unit 1 - Exploring

Businesses (Distinction*)

Customer retention - : answers :- Customers who remain loyal to specific brands

and businesses.

Informal - : answers :- Less business-like, friendlier. Informal can refer to

information given verbally.

Formal - : answers :- Business-like, factual, technical and professional, providing a

record. It can refer to writing such as a formal written feedback.

Bureaucracy - : answers :- Detailed procedures which have to be followed.

Austerity - : answers :- The difficult economy conditions resulting from the

government putting measures in place to reduce public spending.

Multi - collaborative - : answers :- Collaborating with multiple partners.

Retail - : answers :- The sale of goods, usually on a small scale directly to the

public for consumption rather than resale.

PESTLE - : answers :- Political, economic, social, technological, legal,

environmental.

Fiscal - : answers :- Relates to government revenue for example taxes.

Inflation - : answers :- A general increase in prices and fall in the purchasing value

of the money.

ISA - : answers :- Individual savings account (a good way to save money without

having to pay tax on it.)

Demographic trends - : answers :- The characteristics of a country's population.

Environmental factors - : answers :- Those factors outside of the business over

which you mostly have no control.

Ethical trends - : answers :- Trends determined by moral principles.

Whistle - blowing - : answers :- Informing on someone who is doing something

wrong or illegal.

Wholesale - : answers :- The sale of goods on a large scale at a lower price,

usually sold direct to the retailer to sell on at a profit.

Outsource - : answers :- Buying services or products from outside suppliers,

often overseas to cut costs.

Logistics - : answers :- The operation and management of getting suppliers from

one point to another.

Loss leader - : answers :- A product or service offered at a knock down price,

possibly even at a loss to the business. This is done to attract additional sales and increase profits and market share.

Lateral - : answers :- Approaching subjects from alternative perspectives.

"blue sky" thinking - : answers :- Approaching subjects with no restrictions on

perspectives.

Serendipity - : answers :- A pleasant discovery that occurs unexpectedly or by

accident.

Unique selling point (USP) - : answers :- An original or individual concept, service

or product that is exclusive to your business.

Branding - : answers :- Producing a unique name or image for a business or

product.

Unlimited liability - : answers :- Owner is personally liable for the firm's debts

and may have to pay for losses made by the business out of their own pocket.

Limited liability - : answers :- Limited companies have their own legal identity,

there owners are not personally liable for the firm's debts.

Primary sector - : answers :- Businesses that produce or obtain raw materials or

natural products.

Secondary sector - : answers :- Businesses that manufacture, process or contrast

goods.

Tertiary sector - : answers :- Businesses that supply goods and/or services to

customers.

Quaternary sector - : answers :- Industries providing information services.

Mission - : answers :- A promise of commitment to the business cause.

Vision - : answers :- The direction the business aims to travel in the future, short

or longer term.

Values - : answers :- The philosophy and ethos of the business which underpins

the vision.

Customer - : answers :- The person who buys the product.

Consumer - : answers :- The person who uses the product.

Stakeholders - : answers :- Any group or individual with an interest in the

business.

occupation - : answers :- All activities a person engages in to earn a living

Business-profit

private sector ownerships - : answers :- private sectors are owned by individuals

sole traders - : answers :- a business that is owned and operated by one person

it has to be registered with HMRC Maintain Record Unlimited liability

Tax - : answers :- a required payment to a local, state, or national government

profit - : answers :- A financial gain, esp. the difference between the amount

earned and the amount spent in buying, operating, or producing something

Advantage and disadvantage of sole trader - : answers :- Advantage-

All decision making alone Keep all profits private More motivation Fast decisions Disadvantage- Unlimited Liability Harder to get loan Very tough to take decision Difficult to find cover when ill

Partnerships - : answers :- Registered separately as self employed

two or more people share the costs and responsibilities unlimited liability Agent, principle, relationship

Advantage and disadvantage of partnership - : answers :- ADVANTAGE

inexpensive to set up easy to organize share responsiblities share time shifts and work hours each brings their own skills DISADVANTAGE have to depend on others responsibility share profits conflicts with parner different ethics financial risk

Partnership - : answers :- Comprising two or more people who set up in business

together and share all profits and losses.

Economy - : answers :- The state of a country, such as its wealth, production and

consumption of goods and services.

responsible not just for the profits but also the losses, such as debts and claims against the business. This means that all owners are responsible for any shortfall of money if the business has insufficient funds. This could mean all savings and possessions including car, house, etc are at risk.

Limited liability - : answers :- Where liability is limited, this means there is a limit

(or cap) placed upon the amount that can be claimed. This type of liability might seem to be the obvious choice, but setting up in business is relatively easy and the risks attached can be overlooked, especially without the benefit of knowledge gained through studying.

FTSE - : answers :- The Financial Times Stock Exchange.

Sectors - : answers :- Businesses operate in different sectors according to the

nature of their business and the product or service they provide. These sectors are known as primary, secondary, tertiary and quaternary and are the four stages of the journey from sourcing a material to being ready for the customer.

Primary sector - : answers :- Let's take an example of a customer such as a

builder who requires the roof trusses for a house - the builder relies on the primary sector to source the raw materials and on the secondary sector to prepare those materials from their raw state so that they can form the frame for a roof.

Secondary sector - : answers :- The secondary sector processes the raw materials

produced by the primary sector so that they can be sold on. For example, farmed vegetables, mined diamonds or coal, felled wood and caught fish, all need to be

prepared or manufactured in some way by the secondary sector so that they are fit for sale.

Tertiary sector - : answers :- This sector provides the supporting services which

store and distribute the goods which have been manufactured. It also provides insurances against, for example, damage or possibly late delivery. Businesses often rely on advertising to promote their products - another service provided by the tertiary sector.

Quarternary sector - : answers :- Together with the tertiary sector, employees

working in the quaternary sector currently account for approximately 75 per cent of the UK workforce. This sector also provides support services and can appear to overlap the tertiary sector. Examples include the communications infrastructure for day to day operations, such as telephoning and emailing.

Scope of business activities - : answers :- The scope of a business means the

range covered by that business.

Scope: Local - : answers :- A local business is usually one which is owned locally

and serves just the local area, such as an independent village shop or perhaps a pub which is owned by local residents.

Scope: National - : answers :- You probably use businesses which operate

nationally fairly frequently and possibly have not considered this before. Some

known as revenue.

Revenue - : answers :- The income received by a business for selling its products

and services.

Market forces - : answers :- Factors created by the economy for the demand and

availability of products and services which influence costs.

Aims and objectives - : answers :- Every business needs aims and objectives - just

as every lesson you attend has aims defining the purpose and outcome of the lesson and objectives which identify how to achieve the aim.

Stakeholders - : answers :- There are two types of stakeholders, internal and

external. In other words, those within the business, such as its employees, and those outside the business, including customers and anyone else with an interest in the business. They all have a stake in the business.

Internal stakeholders - : answers :- ▸ managers (decision makers and bosses)

▸ employees (reporting to managers) ▸ owners (overall responsibility for the business).

External stakeholders - : answers :- ▸ Suppliers

▸ Lenders

▸ Competitors ▸ Debtors ▸ Creditors ▸ Customers ▸ Government agencies and departments ▸ Communities ▸ Pressure groups ▸ Interest groups

Stakeholder feedback - : answers :- Surveying stakeholders for ideas,

compliments, suggestions and complaints.

Regulator - : answers :- External body acting as supervisor to ensure businesses

comply with relevant legislation.

Shareholder value - : answers :- The benefits received by shareholders relative to

the number of shares they hold in a business.

Customer retention - : answers :- Customers who remain loyal to specific brands

and businesses.

Employee involvement - : answers :- As employees are stakeholders of the

business they contribute to the success of the business, whether it is as a direct or indirect result of their actions.